Invest in a Real Estate Fund rather than in Properties

Requirement: You have to be an accredited investor to invest in a real estate fund. Wonder what an accredited investor is?

Reasons to consider investing in a real estate fund:

  • Allows you to be diversified across a number of properties rather than placing all your capital into one project, which diversifies the risk
  • Offers the financial benefits and returns of owning real estate without the direct responsibility of owning and operating a property
  • Truly passive income

Highlights of this fund:

  • 7% preferred return + 50/50 split over preferred
  • Current performance for 2020: Q1 2020 returned 8.7%, Q2 2020 8.6% (annualized)
  • Online investor portal with asset level details
  • Equity membership
  • ≤1.5% management fee

From the manager:

We offer a real estate debt fund that, operating like a bank, offers short term real estate backed loans to borrowers based on available property equity.

  • The typical borrower needs liquidity for short term bridge financing or to grow their business. We do not underwrite businesses, but we do lend to them using their real estate holdings as collateral
  • DML Capital is built on two core tenants: Transparent Business and Consistent Returns. We offer investors a transparent look into our fund via an online investor portal and we prioritize capital preservation / high single digit returns
  • DML’s investors receive quarterly distributions of earnings—Q1 2020 returned 8.7%, Q2 2020 8.6% (annualized)
  • Portfolio is quite conservative: >700 FICO, <70% LTV, majority 1st liens, personal guarantees required
  • We provide unprecedented levels of transparency to investors. Our entire fund portfolio (historical and active) is available for investors to view on our proprietary online investor portal. Investors are able to see every deal we have ever done, with many details including the official appraisals, deeds of trust, loan summaries, etc.
  • We are more conservative compared to competitors, as we are unleveraged and won’t exceed an LTV of 75% across the fund.
Reach out here for more info.

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To be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.

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